Amazon launched its express delivery
service in Singapore on Thursday, the US online retail giant's first foray
into Southeast Asia and a move that puts it in direct competition with
China's
Alibaba.

Prime Now allows online shoppers in the affluent city-state of five
million
people to order a wide range of goods from baby products to food, electronic
items and beer.
It marks Amazon's entry into a region of more than 600 million people,
where many countries have a growing middle class, and which is seen as the
next e-commerce battleground.

"Amazon's entry augurs well for shoppers in the region who will
benefit
from more choice, price competition and better delivery services," said Prem
Shamdasani, an associate professor for marketing at the National University
of
Singapore Business School.
Alibaba already has a headstart in the region with an 83-percent stake in
Southeast Asia-focused online retailer Lazada.

The Chinese firm, founded by China's richest man Jack Ma, raised its
stake
in Lazada last month with a further 1 billion dollar investment.
The Prime Now application was made available for download in Singapore on
Google's Play store and Apple's iTunes.
By just entering their postal zip code after opening the app on their
devices, online shoppers can start placing their orders.

The service promises delivery of items within two hours.
Business consultancy Frost & Sullivan projects online retail sales in
Southeast Asia to more than quadruple to 71 billion dollars by 2021 from 16
billion dollars
in 2016.
The e-commerce sector made up 4.1 percent of the total retail market for
the region last year but this share is set to rise to 11.5 percent by 2021,
the consultancy said.
But Shamdasani warned that it could be difficult market. Southeast Asia
includes relatively wealthy countries such as Singapore, but also developing
nations with poor infrastructure where it is harder to do business.

"While e-commerce is set to grow the market in Southeast Asia is
relatively
small and fragmented with narrow margins," he said.
He said Amazon will "face increasing competition from many established
store retailers who are embracing e-commerce and providing their customers
with seamless omni-channel shopping experiences".

Mei Lee Quah, an analyst for telecoms and payments strategy at
business
consultancy Frost & Sullivan, said that while Amazon and Alibaba are rivals,
their product offers are also complementary.
"Their offerings will be slightly different because they (Amazon) bring
products in the form of US inventory," Quah told AFP.
"Lazada plays in a slightly different field. They are also of quality but
the range is different, it caters more for the overall Asian market," she
added. (AFP)